One signal

Nvidia’s price-to-earnings ratio has fallen from 101.3 in mid-2023 to 26.5, while its share price rose 398.7% and trailing profit grew to $193 billion, according to Trefis. The lower multiple reflects profits catching up with expectations, not necessarily a bargain hiding in the stock market’s sofa.

Trefis notes that Nvidia’s Compute & Networking segment accounted for 89.6% of fiscal 2026 revenue, and cites management linking demand for AI infrastructure to Blackwell sales. Its analysis says to watch whether profit keeps growing at anything like its recent pace, particularly when Nvidia reports in November. These are valuation figures and analysis, not a recommendation to buy or sell.

Discuss: When a company’s profits grow this quickly, is a lower price-to-earnings ratio a useful sign of value, or does it mostly tell you that yesterday’s growth has already happened?

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